1. Example Exercise 3-9 Effect of Errors on Adjusted Trial Balance
In this example exercise, we need to determine the effect of errors on the adjusted trial balance.

2. Trial Balance is in balance
Example Exercise 3-9
Effect of Errors on Adjusted Trial Balance
Should have been a debit to Accounts Receivable rather than Accounts Payable
In the first adjustment, the accrued fees were debited to Accounts Payable for $5,340 [CLICK] and credited to Fees Earned for $5,340. The totals [CLICK] are equal even though the debit [CLICK] should have been to Accounts Receivable instead of Accounts Payable.
Trial Balance is in balance

3. Example Exercise 3-9 Effect of Errors on Adjusted Trial Balance
The amount of the debits and credits are not equal
In the second adjustment, the depreciation entry was debited to Depreciation Expense for $3,620 and credited to Accumulated Depreciation for $3,260 [CLICK]. The debits and credits are not equal [CLICK] and the trial balance is out of balance by $360, or $3,620 minus $3,260. Total debit balances are higher by $360 [CLICK]. This type of error is known as a transposition error since the amounts were transposed.
Trial Balance is not in balance

4. Example Exercise 3-9  For Practice: PE 3-9A, PE 3-9B
Refer to Practice Exercise PE 3-9A and PE 3-9B for more practice discovering errors in the adjusted trial balance.
 For Practice: PE 3-9A, PE 3-9B